Consider the following pricing strategies:
A.perfect price discrimination
B.charging different prices to different groups of customers
C.optimal two-part tariff
D.single-price monopoly pricing
Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?
A)a, b, c, and d
B)a, b, and c only
C)a and b only
D)a and c only

Question

Quizplus · Accepted Answer

Only optimal two-part tariff and perfect price discrimination allow a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing. Single-price monopoly pricing and charging different prices to different groups of customers would not capture the entire consumer surplus. Therefore, the correct answer is D which includes both optimal two-part tariff and perfect price discrimination.

Consider the Following Pricing Strategies